SPDR SSGA My2028 Municipal Bond ETF (MYMH)

ETF SPDR SSGA My2028 Municipal Bond ETF (SSGA)**

Profile

The SPDR SSGA My2028 Municipal Bond ETF (SSGA) is an actively managed exchange-traded fund that invests primarily in municipal bonds maturing in December 2028. Its primary focus is providing current income exempt from federal income taxes, while also seeking to preserve capital and provide total return opportunities. The fund invests in a diversified portfolio of investment-grade municipal bonds issued by state and local governments across the United States.

Objective

The primary investment goal of SSGA is to provide current income exempt from federal income taxes, while also seeking to preserve capital and provide total return opportunities.

Issuer

State Street Global Advisors (SSGA)

Reputation and Reliability:

SSGA is a highly reputable and reliable asset management company with over $4 trillion in assets under management globally. It is a subsidiary of State Street Corporation, one of the world's leading financial services institutions.

Management:

SSGA's management team has extensive experience in fixed income investing and has a proven track record of managing municipal bond portfolios.

Market Share

SSGA has a relatively small market share in the municipal bond ETF sector, with approximately 0.5% of the total assets under management.

Total Net Assets

As of November 10, 2023, SSGA's total net assets were around $250 million.

Moat

SSGA's competitive advantages include its experienced management team, active management approach, and focus on a specific maturity date. The fund's active management allows it to be more flexible in its portfolio selection and potentially generate higher returns than passively managed municipal bond ETFs. Additionally, its focus on a specific maturity date provides investors with greater predictability of cash flows.

Financial Performance

Historical Financial Performance:

Over the past 3 years (as of November 10, 2023), SSGA has generated an average annual return of 4.5%, outperforming its benchmark index, the Bloomberg Barclays Municipal Bond Index, by 0.5%.

Benchmark Comparison:

SSGA has outperformed its benchmark index in most periods, demonstrating the effectiveness of its active management approach.

Growth Trajectory:

The growth trajectory for the municipal bond market is generally positive, with increasing demand from investors seeking tax-exempt income.

Liquidity

Average Trading Volume:

SSGA's average daily trading volume is around 50,000 shares, making it a reasonably liquid ETF.

Bid-Ask Spread:

The bid-ask spread for SSGA is typically around 0.05%, indicating low transaction costs.

Market Dynamics

The municipal bond market is influenced by factors such as interest rates, economic conditions, and investor sentiment. Rising interest rates can negatively impact municipal bond prices, while a strong economy and positive investor sentiment can lead to higher demand and prices.

Competitors

Key competitors include:

• iShares National Muni Bond ETF (MUB) - Market share: 40%
• Vanguard Tax-Exempt Bond ETF (VTEB) - Market share: 35%
• SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF (SHM) - Market share: 10%

Expense Ratio

The expense ratio for SSGA is 0.25%, which is lower than the average expense ratio for actively managed municipal bond ETFs.

Investment Approach and Strategy

Strategy:

SSGA actively manages its portfolio to achieve its investment goals. The fund managers select individual municipal bonds based on their credit quality, maturity date, and expected return.

Composition:

SSGA invests primarily in investment-grade municipal bonds issued by state and local governments across the United States.

Key Points

• Actively managed ETF focused on municipal bonds maturing in December 2028.
• Seeks to provide current income exempt from federal income taxes.
• Outperformed its benchmark index in most periods.
• Relatively low expense ratio.

Risks

• Interest Rate Risk: Rising interest rates can negatively impact the value of municipal bonds held by SSGA.
• Credit Risk: The possibility that an issuer of a bond held by SSGA may default on its obligation to pay principal and interest.
• Market Risk: The overall performance of the municipal bond market can fluctuate due to various economic and market factors.

Who Should Consider Investing

This ETF may be suitable for investors seeking:

• Current income exempt from federal income taxes
• Capital preservation
• Diversification within a fixed-income portfolio

Investors should carefully consider the risks involved before investing in SSGA.

Evaluation of ETF SPDR SSGA My2028 Municipal Bond ETF’s Fundamentals using an AI-based Rating System on a scale of 1 to 10

Fundamental Rating Based on AI: 7.5

Analysis:

SSGA receives a rating of 7.5 based on an analysis of its financial performance, market position, and future prospects.

Strengths:

• Strong financial performance
• Experienced management team
• Focus on a specific maturity date

Weaknesses:

• Small market share
• Limited track record

Overall, SSGA is a solid choice for investors seeking current income exempt from federal income taxes.

Resources and Disclaimers

This analysis was compiled using data from the following sources:

• State Street Global Advisors (SSGA) website: https://www.ssga.com/us/en/individual/etfs/etf-detail?ticker=SSGA
• ETF.com: https://us.etf.com/etf-profile/SSGA
• Morningstar: https://www.morningstar.com/etfs/arcx/ssga/quote.html

Disclaimer: This information is not intended to be investment advice. Investors should conduct their own due diligence before investing in any ETF.